Depreciation Acceleration / Cost Segregation
Cost Segregation Studies have grown in utilization across all building types in all regions of the country. Most Commercial Real Estate owners have found them to be of value. This is especially true for the buildings they have owned or improved in the last 10 years.
To proceed, we will provide a Net Present Value estimate. This will give you an idea of the value of the tax dollar you are allowed to control now versus handing it over to the IRS at this time.
If you can control the use of the money you can gain an advantage over an uninformed competitor. We have seen our client’s use this savings to pay down debt, purchase more stock, real estate or a competitor. Most advisors agree that the longer their clients control the use of the money, the better.
In summary, we would need any available building plans, site surveys, appraisals and or invoices. These are usually easily supplied by the client or your firm.
Next we would schedule a site visit. Our engineers would take some photos and get a feel for the property. This can be handled by anyone in your organization with access to the property (including basements, control rooms and other functional areas of the building).
The Reverse Engineering of the client’s building per IRS Standard is then completed. Authoritative documentation is produced and provided to your firm specific to the property.
The report’s numbers will be interpolated into the client’s tax forms. Form 3115 will be prepared, per the engineering report, and will be filed with the next return. All work papers and back up data will be supplied to you or can be retained by the Engineering firm.
The entire project can take from 3 to 8 weeks to complete but the disruption to the client is typically minimal.
Automobile Service Centers
Casual and Fine Dining Restaurants
Day Care Centers
Fast Food (Quick Service) Restaurants
Health Care Centers
High Rise Buildings
Manufacturing and Processing Facilities
Senior Assisted Living Facilities
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